The Chinese company is interested in Renault technologies for the production of gasoline and diesel engines. In turn, Renault needs funds for the development of electric cars.
Renault is planned to be divided into two large companies – producing gasoline and electric models. Geely is interested in acquiring a unit for the production of cars with internal combustion engines.
Renault may change ownership. The Chinese concern Geely Auto is being considered as a buyer. This was reported by Automotive News Europe, citing sources in the Renault Group.
As it became known, Renault is planning a large-scale reorganization. They want to divide the company into two large divisions – for the production of electric cars and cars with internal combustion engines.
The electrical division of Ampere will become the main one and will remain in France — about 10,000 people will work there. But the headquarters of the branch for the production of gasoline cars (its working name is Horse) will most likely move to Spain.
Geely wants to become co-owners of Renault’s division for the production of cars with internal combustion engines – they plan to buy 40% of its shares. Another 40% of the shares will remain with the Renault Group, and 20% will be bought by the Chinese oil and gas concern PetroChina.
It is noteworthy that Renault’s long-time partners with Nissan are not involved in this deal. However, the Renault-Nissan-Mitsubishi alliance will remain and, obviously, will focus on electric cars — it is on their development that funds from the sale of shares of the ‘gasoline’ division will go.
We will remind that Geely Auto has been actively expanding its empire in recent years. The Chinese concern has owned Volvo since 2010, and recently acquired Lotus, as well as a stake in Mercedes-Benz and Smart.
